By Ian Findlay, industrial reporter

FIRST MINISTER Jack McConnell and Enterprise Minister Nicol Stephen were yesterday urged to act over a “very big crisis” in funding for the Scottish Enterprise network.

The call came from SNP MSP Alex Neil, convener of Holyrood’s enterprise and culture committee, who also said he did not believe Scotland’s main economic development organisation had been “up front” about its cash problems.

Mr Neil recently repeated warnings of job cuts across the organisation and said a 40% reduction in the Business Gateway programme and training initiatives was possible.

Mr Neil, also co-convener of Holyrood’s cross-party group on the Scottish economy, claimed ministers were privately admitting to a crisis over funding within SE. He expected ministerial statements next week.

There has been growing speculation for some time over what is to happen within SE, and this has been heightened by recent revelations of a £30 million overspend by the organisation in this financial year.

The results of a structural review, which has been ongoing for months, were expected a few weeks ago but have been delayed, apparently as a result of a desire by the Executive to combine such an announcement with a similar type of announcement over Careers Scotland.

It is understood staff were being briefed as of yesterday as to plans for structural changes within the organisation and its 12 local enterprise companies. However, staff were not expected to be told yet of any job implications.

Another keynote speaker at the SCDI forum yesterday was SE’s chief executive Jack Perry.

It was true that in the year about to end SE had accelerated some £30 million spending on projects.

However, total spending within the current three-year review period would be within allocation.

He also conceded that within a pipeline of projects presented to SE there were opportunities “far in excess” of its future budget.

Mr Perry later said he would like to be able to announce the full results of the structural review of SE “as soon as possible” but some—including focusing on “municipal regions”—were already being implemented.

He said all 12 local enterprise companies in SE’s network would remain in existence, but refused to rule out possible job cuts as a result of the wide-ranging structural review.